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Genesis Worldwide (GWI)

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Thursday 05 March, 2009

Genesis Worldwide

Genesis Worldwide Inc. Announces Fourth Quarter...



FOR:  GENESIS WORLDWIDE INC.

TSX, AIM SYMBOL:  GWI

March 5, 2009

Genesis Worldwide Inc. Announces Fourth Quarter and Fiscal Year 2008 Results

Licensing Division Achieves Fourth Consecutive Year of Revenue Growth

MISSISSAUGA, ONTARIO--(Marketwire - March 5, 2009) - Genesis Worldwide Inc. ("Genesis" or the "Company")
(TSX:GWI)(AIM:GWI), a leading provider of 'green' building products and technology, announces its financial
results for the fourth quarter and fiscal year ended December 31, 2008. All dollar amounts are in Canadian
dollars unless otherwise stated.

Overall Performance

The following are the Company's key business highlights -

- Grew licensing division revenue for the fourth consecutive year to $8,852,474, achieving a four year
compounded growth rate of 172%, and achieved second consecutive year of operating profit.

- Reduced operating costs by 25% in the fourth quarter, compared to the previous three quarters, and is in the
process of delisting from its AIM listing, thus lowering public company costs.

- Reduced headcount by 36%, from 131 employees at December 31, 2007, to 84 employees at December 31, 2008.

- Continued sales momentum in government related projects for both schools and affordable housing by signing
two new school projects, and one affordable housing project during the quarter.

- Grew backlog of signed contracts by 28%, to $47.0 million on December 31, 2008, compared to $36.7 million at
December 31, 2007.

- Developed a new Solution Provider Program for 2009, enabling the licensing division to target a broader range
of customers at a lower cost entry point, and drive revenue opportunities to licensees.

- Continues to develop its production and installation process to find ways to reduce costs, both from a
material and efficiency perspective, and developed six new SMART parts in the quarter, which is expected to
result in considerable savings in 2009 for the KML division.

- Released GEM Version 4.0 as a fully hosted application model enabling it to reduce support costs for its
licensees.

- On February 23, 2009, completed a financing with proceeds of $1,534,742 from a secured convertible debenture.

- Previously announced the appointment of two new Board members, Bradley Baker and Richard Pope, as well as the
appointment of Bradley Baker as Chairman of the Board and, the resignation of John Gardner as a member of the
Board. Today announces the promotion of Maged Mostafa, formerly the Vice-President of Business Development of
the GenesisTP division, to the Chief Operating Officer of the GenesisTP division, and, the departure of Jack
Scivoletto as the President of the KML division.

Financial Highlights

Fiscal Year Ended December 31, 2008

- Total revenue for the fiscal year ended December 31, 2008 decreased 13.0% to $21,261,550, compared to
$24,443,499 for the same period in 2007.

- Revenue for the licensing division for the fiscal year ended December 31, 2008 increased 3.9% to $8,852,474,
compared to $8,523,405 for the same period in 2007.

- Revenue for the structural products division for the fiscal year ended December 31, 2008 decreased 22.1% to
$12,409,076, compared to $15,920,094 for the same period in 2007.

- Total contribution margin for the fiscal year ended December 31, 2008 decreased 23.1% to $6,361,929, compared
to $8,276,003 recorded in the same period in 2007.

- Operating expenses, excluding corporate re-organization costs and recovery of scientific research and
experimental development costs, for the fiscal year ended December 31, 2008 increased 3.3% to $11,755,269,
compared to $11,375,398 for the same period in 2007.

- Net loss for the fiscal year ended December 31, 2008 was $7,228,964, or ($0.23) per common share, compared to
a net loss of $4,507,862, or ($0.17) per common share, for the same period in 2007.

Three Months Ended December 31, 2008

- Total revenue for the fourth quarter ended December 31, 2008 decreased 47.0% to $4,451,806, compared to
$8,398,114 for the fourth quarter of 2007.

- Revenue for the licensing division for the fourth quarter ended December 31, 2008 decreased 6.4% to
$1,541,465, compared to $1,647,716 for the same period in 2007. Comparative quarterly results will vary for
this division depending primarily on the timing of shipments of its industrial products.

- Revenue for the structural products division for the fourth quarter ended December 31, 2008 decreased 56.9%
to $2,910,341, compared to $6,750,398 recorded in the fourth quarter of 2007.

- Operating expenses, excluding corporate re-organization costs and recovery of scientific research and
experimental development costs, for the fourth quarter ended December 31, 2008 decreased 11.7% to $2,509,943,
compared to $2,842,165 for the fourth quarter of 2007.

- Total contribution margin decreased by 57.4% in the fourth quarter ended December 31, 2008 to $1,244,069,
compared to $2,917,020 for the same quarter last year.

- Net loss for the fourth quarter ended December 31, 2008 decreased to $1,692,975, or ($0.05) per common share,
compared to net income of $190,833, or $0.01 per common share for the fourth quarter of 2007.

Backlog

Backlog for the licensing division is defined as undelivered contractual commitments, other than minimum
royalty obligations, and assumes that in cases of multi-year/multi-facility commitments by licensees,
subsequent facilities match the industrial technology configured for the first facility. Backlog for the
structural products division is defined as the undelivered portion of signed construction contracts. The timing
of these contractual commitments into revenue is uncertain and the possibility exists that contractual
commitments can be de-booked.

A breakdown of the Company's backlog is as follows:

- Total backlog as at December 31, 2008 was approximately $47.0 million, representing a 28.1% increase over
backlog of approximately $36.7 million as at December 31, 2007.

- Backlog for the licensing division as at December 31, 2008 was approximately $19.0 million. This excludes
minimum royalty obligations.

- Backlog for the structural products division as at December 31, 2008 was approximately $28.0 million.

Further information regarding the Company, and its business and operations, may be obtained from the Company's
continuous disclosure documents filed from time-to-time with the Canadian securities regulatory authorities.
These continuous disclosure documents are available through the Company's web site at www.genesisworldwide.com,
or through the SEDAR website maintained by the Canadian securities regulatory authorities, which can be
accessed at www.sedar.com.

Conference Call/Webcast

The Genesis management team will discuss its fourth quarter and fiscal 2008 financial results on a conference
call to be held on Thursday, March 5, 2009 at 8:30 a.m. Eastern time (1:30 p.m. BST). As well, a webcast link
(audio only) will be made available from the Investor Relations portal of Genesis' website at
http://www.genesisworldwide.com/financial-reports.aspx. There will be a short presentation followed by a
question and answer period lasting for approximately one (1) hour.

/T/

Conference Call Details
-----------------------

 Date:  Thursday, March 5, 2009
 Time:  8:30 a.m. Eastern time (1:30 p.m. BST)
 Local dial-in:  416-641-6123
 North America toll-free:  866-300-7687
 Global toll-free:  800-6578-9898 (dial the international access code of the
  country you are calling from, i.e. a call from the United Kingdom would be
  dialed 00-800-6578-9898)

/T/

A replay of the call will be made available through the Genesis' Investor Relations website portal at
http://www.genesisworldwide.com/financial-reports.aspx, or by dialing 416-695-5800 (local callers only), or
toll-free at 1-800-408-3053 (passcode 3274156#), from approximately 12:00 p.m. Eastern time on the date of the
call through to Thursday, March 12, 2009.

About Genesis Worldwide Inc.

Genesis develops and licenses 'green' building products and technology. Genesis offers licensees a turn-key
solution which includes software applications, industrial technologies, and a wide range of services. The
Genesis Solution encompasses engineered processes and materials that are environmentally sustainable or
'green'. Genesis is headquartered in Mississauga, Ontario, Canada, and has licensees in the United States,
Canada, Europe and the Middle East. For additional information about the Company, visit
www.genesisworldwide.com.

Caution Regarding Forward Looking Information

Certain statements in this press release which are not historical facts constitute forward-looking statements
or forward-looking information within the meaning of applicable securities laws ("forward-looking statements")
and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the Company's
projected revenues, earnings, growth rates, performance, business prospects and opportunities are forward-
looking statements, as are any statements relating to future events, conditions or circumstances. The use of
terms such as "may", "will", "should", "plan", "believes", "predict", "potential" "anticipate", "expect",
"project", "target", "estimate", "continue", and similar terms are intended to assist in identification of
these forward-looking statements. These statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business prospects, and opportunities. These
assumptions, although considered reasonable by the Company at the time of preparation, may prove to be
incorrect.

Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-
looking statements are not promises or guarantees of future performance and involve both known and unknown
risks and uncertainties that may cause the actual results, performance or achievements of the Company to differ
materially from the results, performance, achievements or developments expressed or implied by such forward-
looking statements.

Many factors could cause the actual results of the Company to differ materially from the results, performance,
achievements or developments expressed or implied by such forward-looking statements, including, without
limitation, those factors discussed under the heading "Risk Factors" in the Company's most recent Annual
Information Form ("AIF"), a copy of which is available on SEDAR at www.sedar.com. Forward-looking statements
are based on management's current plans, estimates, projections, beliefs and opinions, and the Company does not
undertake any obligation to update forward-looking statements, except required by law, should assumptions
related to these plans, estimates, projections, beliefs and opinions change.

/T/

Genesis Worldwide Inc.

                         CONSOLIDATED BALANCE SHEETS

Unaudited
As at December 31

                                                       2008            2007
                                                          $               $
                                                ----------------------------
ASSETS
Current
Cash and cash equivalents                           167,064       5,987,862
Accounts receivable                               7,780,771      10,455,380
Inventories and deposits on equipment             1,626,187         895,686
Prepaid expenses                                    310,964         342,515
                                                ----------------------------
Total current assets                              9,884,986      17,681,443
Restricted cash                                     500,000               -
Long-term accounts receivable                             -         287,500
Property, plant and equipment                     4,848,059       4,530,567
Intangible assets                                 2,105,862       2,243,518
                                                ----------------------------
                                                 17,338,907      24,743,028
                                                ----------------------------
                                                ----------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities          6,916,928       7,566,970
Term loan - current portion                         570,943               -
Deferred revenue - current portion                2,779,266       3,567,478
Minimum royalty payment obligations                 376,792         173,330
                                                ----------------------------
Total current liabilities                        10,643,929      11,307,778
                                                ----------------------------

Long-term
Deferred revenue                                          -         287,500
Term loan                                           983,253               -
Minimum royalty payment obligations               1,002,923       1,377,869
                                                ----------------------------
Total long-term liabilities                       1,986,176       1,665,369
                                                ----------------------------

Shareholders' equity
Capital stock                                    56,733,075      56,733,075
Contributed surplus                               1,246,358       1,078,474
Deficit                                         (53,270,631)    (46,041,668)
                                                ----------------------------
Total shareholders' equity                        4,708,802      11,769,881
                                                ----------------------------
                                                 17,338,907      24,743,028
                                                ----------------------------
                                                ----------------------------

Genesis Worldwide Inc.

                       CONSOLIDATED STATEMENTS OF LOSS,
                        COMPREHENSIVE LOSS AND DEFICIT

Unaudited
Year ended December 31

                                                       2008            2007
                                                          $               $
                                                ----------------------------
Revenues
Licensing                                         8,852,474       8,523,405
Structural products                              12,409,076      15,920,094
                                                ----------------------------
Total revenues                                   21,261,550      24,443,499
                                                ----------------------------

Direct cost of revenues
Licensing                                         3,980,339       4,048,674
Structural products                              10,919,282      12,118,822
                                                ----------------------------
Total direct cost of revenues                    14,899,621      16,167,496
                                                ----------------------------
                                                  6,361,929       8,276,003
                                                ----------------------------

Expenses
Research and development                          1,293,589       1,077,313
Scientific research & experimental
 development tax credit                            (100,906)       (770,995)
Selling and marketing                             2,521,819       1,924,268
Engineering and project management                1,744,973       1,740,989
General and administrative                        4,559,130       4,338,800
Occupancy                                         1,635,758       1,517,610
Corporate reorganization costs                      464,448               -
Plant commissioning and restructuring
 costs                                                    -         776,418
                                                ----------------------------
                                                 12,118,811      10,604,403
                                                ----------------------------
Loss before other expenses                       (5,756,882)     (2,328,400)
                                                ----------------------------
Amortization of property, plant and
 equipment                                          877,326         715,846
Amortization of intangible asset                    269,651         269,651
Foreign exchange gain                               (60,460)        (19,117)
Bank interest expense (income), net                  24,206        (248,048)
Minimum royalty accretion                           288,515         298,897
Term loan and debenture interest expense             72,843       1,162,233
                                                ----------------------------
                                                  1,472,081       2,179,462
                                                ----------------------------
Net loss and comprehensive loss for the
 year                                            (7,228,963)     (4,507,862)
                                                ----------------------------

Deficit, beginning of year                      (46,041,668)    (41,533,806)

Deficit, end of year                            (53,270,631)    (46,041,668)
                                                ----------------------------
                                                ----------------------------
Loss per share
Basic and diluted                              $      (0.23)   $      (0.17)
                                                ----------------------------
                                                ----------------------------
Weighted average number of shares
 outstanding                                     30,982,858      25,969,159
                                                ----------------------------
                                                ----------------------------

                              Genesis Worldwide Inc.

                       CONSOLIDATED STATEMENTS OF CASH FLOWS

Unaudited
Year ended December 31

                                                       2008            2007
                                                          $               $
                                                ----------------------------

OPERATING ACTIVITIES
Net loss for the year                            (7,228,963)     (4,507,862)
Adjustments for non-cash items
 Amortization of property, plant and
  equipment and intangible asset                  1,146,977         985,497
 Stock-based compensation expense                   167,884         159,581
 Unrealized foreign exchange loss                   (15,231)              -
 Debenture interest expense accretion                     -         815,965
 Minimum royalty accretion                          288,515         298,897
                                                ----------------------------
                                                 (5,640,818)     (2,247,922)
Changes in non-cash working capital
 balances related to operations
  Accounts receivable, net                        2,674,609      (5,568,815)
  Inventories and deposits on equipment            (730,501)       (126,245)
  Prepaid expenses                                   31,552         127,837
  Accounts payable and accrued liabilities         (650,041)      1,839,767
  Deferred revenue                                 (788,212)      2,317,915
                                                ----------------------------
Cash used in operating activities                (5,103,411)     (3,657,463)
                                                ----------------------------

FINANCING ACTIVITIES
Loan proceeds                                     1,800,000               -
Repayment on term loan                             (245,804)              -
Restricted cash                                    (500,000)
Debenture repayment                                       -      (4,120,000)
Capital stock issued, net of issue costs paid             -      15,642,765
                                                ----------------------------
Cash provided by financing activities             1,054,196      11,522,765
                                                ----------------------------

INVESTING ACTIVITIES
Additions to property, plant and equipment       (1,329,177)     (2,375,856)
Disposals to property, plant and equipment          149,590               -
Deferred patent costs                              (131,996)       (192,970)
Minimum royalties paid                             (460,000)       (320,000)
                                                ----------------------------
Cash used in investing activities                (1,771,583)     (2,888,826)
                                                ----------------------------

Net increase (decrease) in cash and cash
 equivalents during the year                     (5,820,798)      4,976,476
Cash and cash equivalents, beginning of year      5,987,862       1,011,386
                                                ----------------------------
Cash and cash equivalents, end of year              167,064       5,987,862
                                                ----------------------------
                                                ----------------------------

Supplemental cash flow information
Interest paid                                        85,630         346,268
Initial public offering costs not yet paid                -         831,010
                                                ----------------------------
                                                ----------------------------

/T/

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:

Genesis Worldwide Inc.
Catherine Smyth
Manager, Investor Relations
(905) 285-9909, ext. 302
Website: www.genesisworldwide.com

OR

Canaccord Adams
Robert Finlay / Ryan Cohen
+44 020 7050 6500

-0-

Genesis Worldwide Inc.

						                                                                                                                                                                                                                           

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